IN206 - Nevis Entities and Their Advantages: A Summary

The Federation of St Kitts and Nevis has been an independent country since 1983. It is a one hour flight to Puerto Rico, three hours to Miami and eight hours to the UK. Direct flights to all of these destinations are available from St Kitts.

Under the constitution of the Federation, Nevis is able to introduce its own legislation, and in 1984 established its international business sector with the enactment of the Nevis Business Corporation Ordinance (NBCO) 1984. Subsequent to this the international business in Nevis has grown steadily and now encompasses Limited Liability Corporations (LLCs), Registered Trusts, Multiform Foundations and the Economic Citizenship Programme.

This Dixcart Article highlights the key elements of each of these entities.

Nevis Business Corporation Ordinance (NBCO) 1984

The key features of the NBCO are that companies formed under this Ordinance are tax free, simple to establish and manage, efficient, confidential and cost effective.

• Tax Free: no taxes are levied on Nevis International Business Corporations (IBCs) by the Nevis Government.
• Simple to Establish and Manage: all that is required to proceed with the formation is a company name and the share capital. There are no annual returns or accounts to file. An annual renewal fee is payable on the anniversary of incorporation.
• Efficient: company documents are available within twenty-four hours.
• Confidential: no register of directors or shareholders is held by the Nevis Government. All Nevis registered agents are bound by the St Kitts and Nevis Confidentiality Act.
• Cost Effective: Government fees are relatively low and therefore the annual costs for maintaining a Nevis company are also low. The costs to incorporate an LLC or an IBC, for example, are US$ 235, with an annual renewal fee of US$ 220.

Additional potential advantages include the fact that foreign companies are able to re-domicile to Nevis under the Ordinance and that an IBC can act as a private trust company without the need to obtain a licence.

Nevis International Exempt Trust Ordinance (NIETO) 1994

This Trust Law is specifically aimed at individual wealth management considerations in the US and intended for planners seeking offshore asset protection for their clients.

The legislation is widely regarded as well drafted and, once the trust is registered, the trust assets are aggressively protected by the legislation. Key elements include the requirement for the trustee to be a Nevis IBC or licensed trust company, and for the trust be registered as a Nevis International Trust. This involves registering the name of the trust, the name of the trustee, the name and address of the registered agent and confirmation from the registered agent that the trust deed is in accordance with NIETO. There is no requirement to file the trust deed, which helps maintain confidentiality.

Nevis Limited Liability Corporation Ordinance (NLLCO) 1995

This Ordinance was originally enacted for situations arising in the United States, and is used in conjunction with NIETO to provide asset protection. It offers similar advantages to Nevis IBCs in that the companies are tax free, simple to establish and manage, efficient and confidential, and with relatively low maintenance costs.

Additional advantages include the fact that Nevis LLCs are deemed “tick the box” entities for US tax reporting. Their flexibility means that they can be structured as  partnerships or limited by shares, which is useful for planning as this flexibility means that they can be used as hybrid companies.

Multiform Foundations Ordinance (MFO) 2004

This Ordinance was enacted to create opportunities for a similar type of entity to those found in a number of Civil Law jurisdictions, such as Liechtenstein and Panama. The primary benefit, compared to Liechtenstein, is cost, and, compared to Panama, is the lack of bureaucracy.

The Nevis Multiform Foundation is a very flexible entity as it can be structured as a pure Foundation, as a company with shares, as a LLC, as a trust or, finally, as a partnership, all within the legal entity of the Foundation. The Foundation can evolve during its lifetime from one type of Multiform, and can be converted from an IBC, a LLC or a trust in Nevis. In addition any entity from another jurisdiction can be re-domiciled and converted to a Nevis Multiform Foundation. Tax resident Foundations in Nevis can also take advantage of St Kitts and Nevis Double Tax Treaties.

Accounts are required to be submitted in Nevis if the entity is tax resident.

Economic Citizenship

The St Kitts and Nevis Citizenship Programme is highly regarded around the world. The granting of Citizenship, and therefore a Nevis passport, can be extremely useful for tax planning and for security. To qualify for the Citizenship Programme the individual must either invest in an approved real estate project or make a donation to the Sugar Diversification Foundation. A standard due diligence process is then undertaken before the Citizenship and passport are granted.

Additional Information

Nevis offers many attractive international entities and an appealing Economic Citizenship Programme for individuals. If you require any additional information, please contact John Terry at our office in Nevis john.terry@dixcartnevis.com or contact us.